The limited liability of a stockholder can be viewed as both an advantage and a disadvantage.

Question

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The limited liability of a stockholder means that they are only liable for the amount of their investment in the company. This is an advantage because it protects the stockholder's personal assets in the event of the company's failure or financial troubles. However, it can also be a disadvantage because it may encourage risk-taking behavior by the company's management, knowing that the stockholders are not personally liable for any negative consequences.

The Limited Liability of a Stockholder Can Be Viewed as Both